The Philippines remains one of the most sought-after offshoring locations in the world. In fact, the information-technology business process outsourcing (IT-BPO) industry alone will earn the country $29 billion in 2022, based on projections.
It’s not just IT, though; companies all over the world have been offshoring other business functions to the Philippines in growing numbers. Case in point: offshoring of accounting functions across the archipelago has been gaining steam.
If you want to optimize your business processes via offshore accounting, it’s in your best interest to look into the many opportunities the Philippines presents. Here are what’s in store for you should you give this strategy a go.
1. Great cultural fit for Western countries
Filipino culture is at the center of the Venn diagram of both Eastern and Western culture. With English as one of the national languages, it is highly prevalent in all sectors of Filipino culture, from private to public institutions. On top of that, forms of entertainment from the West, from movies and TV shows to video games and music, are widely available in the archipelago.
These contribute to a high English literacy rate and add to the country’s similarity with Western cultures that are favorable to offshore employment.
2. Highly skilled and educated workforce
The Philippines’s literacy rate is 94%. That is thanks to a globally competitive K-to-12 curriculum. As early as grade school, students receive a well-rounded education in core subjects such as science and mathematics. This continues until university, where enrollees choose their specialty among various courses offered by almost 2,300 higher institutions scattered across the archipelago.
One of the top college courses in the country is Accountancy. That leads to a sizable population of CPAs ready to take on full-time or part-time accounting jobs from offshore clients.
3. Filipino CPAs are continually trained in their profession
Unlike most other licensed professions, Filipino CPAs need to take additional courses years after licensure to maintain a strict level of competence in their field.
The Republic Act No. 10912, otherwise known as the Continuing Professional Development (CPD) Act of 2016, was instituted to encourage licensed professionals to further advance their knowledge and expertise. Refusal to adhere to this mandate excludes them from renewing their professional license, as administered by the Professional Regulation Commission (PRC).
For prospective employers, the law means no talent under their payroll stagnates in terms of skills and proficiency.
4. The Philippines has great infrastructure for offshoring in place
The country’s infrastructure can compete with the best offshore locations worldwide. In terms of telecommunications, the archipelago relies on fiber optic cables, with widely accessible satellites as a backup.
There is also a solid outsourcing and offshoring culture that developed over decades, which means this line of work is generally accepted by the public and supported by the government. This ensures that you can expect a steady line of candidates and government support for years.
On top of these, roads, water, and, most importantly, power prove dependable. That’s most true if you decide to locate your offshore team in major cities such as Metro Manila, Cebu, and Davao.
5. Filipinos can adjust their work schedule
While the Philippines don’t share the same time zone as most western countries, Filipinos are known for adaptability and flexibility. If hired to work for an offshore client, they will be ready and able to adjust their daily routines to their employment, especially in terms of time.
In all likelihood, you will be working with offshore teams on graveyard shifts or in the schedule most convenient to you. With many offices on graveyard shifts ready and a culture of normalcy when it comes to working odd shifts, you won’t find it hard to look for candidates willing to work for you at any time.
6. Knowledge of different accounting software
As part of the CPD Act of 2016, licensed professionals are expected to keep abreast of all progress in their respective fields via continued formal and informal education. That covers sustained familiarity with tools necessary for their trade, such as accounting software for CPAs.
While it’s still in your best interest to provide sufficient training to your offshore team, you can rest assured that your hired accountants will be more or less savvy with whatever new technology you introduce.
7. Reasonably priced
One of the fundamental reasons for offshoring is cost reduction. It’s crucial for your offshoring efforts to yield the return of investment you envision.
On that note, the Philippines is a relatively affordable location to manage an offshore team as it has a low cost of living compared to other countries. You can expect your staff to agree to remuneration packages that are more affordable than what you would pay for inshore talent.
Start Your Offshore Accounting Operations in the Philippines
Over the years, offshoring has become a viable business strategy. It’s adaptable whether you’re a big company with an already established brand or a small start-up trying to make a mark in your industry. However, you must be careful with the nitty-gritty. For instance, in terms of location, you need to choose wisely. Rest assured, you cannot get wiser than when you opt for the Philippines.
Contact Manila Recruitment if you need help assembling an offshore accounting team. We have experts to turn your vision into reality. What are you waiting for? Let’s get down to business today!